Written Commentary
GOLD / SILVER
Apparently, gold and silver prices are cheered by the latest upside extension in treasury prices (yields reached the lowest level since mid-February) and to a lesser degree by a slightly weaker US dollar in the early going. However, China continues to express its disdain for speculative activity in key industrial material prices with an investigation launched into the spot iron ore market and that leaves a dark cloud hanging over many markets where China is a significant demand source and a source of inflation.
PLATINUM / PALLADIUM
Like the gold market, the palladium charts are extremely negative with severe range down action last week leaving September palladium without close in and credible support and in turn leaving bargain hunting buyers hesitant to step into fresh positions. Not to be left out, the platinum charts were also severely damaged again overnight with a range down extension, and the market seemingly having little in the way of close in support until the $1,016.70 level.
COPPER
Like many other physical commodities, last week’s macroeconomic let down and significant physical commodity market liquidation waves have injured sentiment in copper on several different occasions. In fact, with China announcing investigations into the spot Iron Ore trade, it is clear the Chinese government is serious about deflating material prices and without a noted change in key demand fundamental issues, July copper might be on a direct path to retest $4.00.
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